Experts Say Mobile Internet Rates Likely to Rise

LOS ANGELES — Mobile Internet data rates are likely to rise in the near future.

This analysis comes on the heels of news that mobile voice rates are falling. According to CNET News, Spring Nextel plans to roll out a $69.99 monthly rate. A price war among the major carriers is also likely, and even though that will be good for consumers, it’ll mean trouble, too.

To make up for the money they’re due to lose on voice services, mobile carriers will likely pump up the prices on Internet service.

"Voice revenue is declining for the carriers," said analyst Charles Golvin of Forrester Research. "And the vision for the future is to use data revenue to make up for the shortfall and to kick [average revenue per user] into growth mode."

Consumers are primed for these price increases. Most mobile carriers offer catch-all data plans at large flat rates. AT&T, Verizon and T-Mobile all offer data plans that range in price from $30 to $40, and those are in addition to their rates for voice services.

These data plans promise big things but don’t always deliver. Spring Nextel claims to offer unlimited data for a flat rate, but there’s actually a 5GB cap, above which consumers get charged extra fees.

And users are dialing up the Internet more and more on their mobile devices. In the second quarter of 2009, AT&T saw a 37.2 increase in usage, while Verizon’s usage went up 52 percent.

Text messages also kill consumers. Even though it’s widely known that delivering text messages costs carriers very little, they all charge a premium for it. If songs costs as much to download as text messages cost to send, one track would cost more than $5,000.

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Teasy Agency Launches Marketing Firm

Teasy Agency has officially launched Teasy Marketing firm.

Ofcom Investigates More Sites in Wake of AV Traffic Shifts

U.K. media regulator Ofcom has launched investigations into 20 more adult sites as part of its age assurance enforcement program under the Online Safety Act.

MintStars Launches Debit Card for Creators

MintStars has launched its MintStars Creator Card, powered by Payy.

xHamster Settles Texas AV Lawsuit, Pays $120,000

Hammy Media, parent company of xHamster, has settled a lawsuit brought by the state of Texas over alleged noncompliance with the state’s age verification law, agreeing to pay a $120,000 penalty.

RevealMe Joins Pineapple Support as Partner-Level Sponsor

RevealMe has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

OnlyFans Institutes Criminal Background Checks for US Creators

OnlyFans will screen creators in the United States for criminal convictions, CEO Keily Blair has announced in a post on LinkedIn.

Pineapple Support to Host 'Healthier Relationships' Support Group

Pineapple Support is hosting a free online support group on enhancing connection and personal growth.

Strike 3 Rejects Meta 'Personal Use' Defense in AI Suit

Vixen Media Group owner Strike 3 Holdings this week responded to Facebook parent company Meta’s motion to dismiss Strike 3’s suit accusing Meta of pirating VMG content to train its artificial intelligence models.

Pornhub, Stripchat: VLOP Designation Based on Flawed Data

In separate cases, attorneys for Pornhub and Stripchat this week told the EU’s General Court that the European Commission relied on unreliable data when it classified the sites as “very large online platforms” (VLOPs) under the EU’s Digital Services Act, news organization MLex reports.

New Age Verification Service 'AgeWallet' Launches

Tech company Brady Mills Agency has officially launched its subscription-based age verification solution, AgeWallet.

Show More